Guolian Minsheng Securities: AI + Automotive Accelerating Evolution, Intelligent Driving & Siasun Robot & Automation & Globalization Resonating.

Guolian Minsheng Securities released a research report stating that looking ahead to the second half of 2026, the policy of trading in old vehicles for new ones will continue to support demand. The bank expects wholesale sales to reach 29.61 million units in 2026, up by 0.2% year-on-year, driving a slight increase in revenue for automotive parts companies. Overall, intelligent electrified components > traditional components, with intelligent electrified components prioritizing intelligence > electrification > automotive electronics. Among traditional components, interior and exterior accessories = chassis components > tires > body shells. Intelligent electrification is reshaping the order, and the global layout is opening up long-term space for components. It is optimistic about the independent & new forces industry chain + intelligentization & Siasun Robot & Automation, and recommends focusing on intelligentization & the new forces industry chain. Key views of Guolian Minsheng Securities: Looking ahead to 2026: Intelligentization & globalization accelerate humanoid Siasun Robot & Automation, and various innovations such as Shenzhen New Industries Biomedical Engineering are thriving. Looking back at the first quarter of 2026, on the revenue side: the revenue of the automotive parts sector was 255.14 billion yuan, up by 2.1% year-on-year, but down by 19.5% quarter-on-quarter mainly due to the traditional off-season in the industry. On the profit side: the gross profit margin of the automotive parts sector was 18.0%, up by 0.5 percentage points year-on-year and 0.4 percentage points quarter-on-quarter. Due to factors such as economies of scale, rising raw material costs, and exchange rates, the net profit margin after deductions for shareholders decreased year-on-year and increased quarter-on-quarter. Looking ahead to the second half of 2026, in terms of overall volume: the policy of trading in old vehicles for new ones will continue to support demand, and the bank expects wholesale sales in 2026 to reach 29.61 million units, up by 0.2% year-on-year, driving a slight increase in revenue for automotive parts companies. In terms of structure: overall, intelligent electrified components > traditional components, with intelligence > electrification > automotive electronics among intelligent electrified components; interior and exterior accessories = chassis components > tires > body shells among traditional components; humanoid Siasun Robot & Automation/Shenzhen New Industries Biomedical Engineering are in the early stages of development and have great potential for growth and change. In terms of valuation: the average PE ratios of automotive parts from 2020 to present/2022 to present/2024 to present/2026 to present/as of 18th June 2026 were 42.58/37.85/35.02/33.56/30.55 times, with current valuations at historical lows, indicating significant upside potential. Customer dimension: Sales growth in North America and Europe remains a top choice for outbound expansion. In the domestic market, in 2026, BYD Company Limited maintains its leading position in the under 150,000 yuan market, and new entrants are accelerating their growth, with high growth in passenger car exports. Therefore, main manufacturers with significant sales growth or high growth rates are still preferred, including emerging forces (Leapmotor) + independent (Geely & BYD Company Limited) industry chains, followed by NIO, XPeng, and Huawei chains. In terms of overseas expansion, the T-chain continues to benefit from the release of capacity and increasing profits; the electrification rate in Europe continues to rise, and Chinese automotive parts are poised to expand globally from North America to Europe with their accumulated overseas experience, expanding overseas capacity, and cost and technological advantages. Product dimension: Intelligent electrification reshapes the order, global layout opens up long-term space for components, optimistic about independent & new forces industry chains + intelligentization & Siasun Robot & Automation incremental growth; recommend focusing on intelligentization & new forces industry chains: 1) Intelligentization: recommend intelligent driving - [Bethel Automotive Safety Systems, Keboda Technology, Huizhou Desay SV Automotive], recommend intelligent cabins - [Ningbo Jifeng Auto Parts], recommend focusing on operators [WM Motor, CAOCAO INC, Pony.ai (joint coverage)]; 2) New forces industry chains: recommend T-chain [Ningbo Tuopu Group, Jiangsu Xinquan Automotive Trim, Zhejiang Shuanghuan Driveline]; recommend H-chain - [Changzhou Xingyu Automotive Lighting Systems, Kunshan Huguang Auto Harness]. Siasun Robot & Automation: recommend Siasun Robot & Automation targets [Ningbo Tuopu Group, Jiangsu Xinquan Automotive Trim, Bethel Automotive Safety Systems, Zhejiang Yinlun Machinery, Ningbo Joyson Electronic Corp., IKD Co., Ltd., Zhejiang Shuanghuan Driveline, Wuxi Longsheng Technology]. North America power shortages: Rapid growth in AI computing power leads to increased demand for data centers and cooling, suggesting focusing on [Weichai Power, Zhejiang Yinlun Machinery] for power. Investment recommendations Intelligent electrification reshapes the order, global layout opens up long-term space for components, optimistic about independent & new forces industry chains + intelligentization & Siasun Robot & Automation incremental growth; recommend focusing on intelligentization & new forces industry chains: 1) Intelligentization: Recommend Bethel Automotive Safety Systems, Keboda Technology, Huizhou Desay SV Automotive, recommend intelligent cabins - Ningbo Jifeng Auto Parts, suggest focusing on operators [WM Motor, CAOCAO INC, Pony.ai (joint coverage)]; 2) New forces industry chains: recommend T-chain [Ningbo Tuopu Group, Jiangsu Xinquan Automotive Trim, Zhejiang Shuanghuan Driveline]; recommend H-chain - [Changzhou Xingyu Automotive Lighting Systems, Kunshan Huguang Auto Harness]. Siasun Robot & Automation: recommend Siasun Robot & Automation targets [Ningbo Tuopu Group, Jiangsu Xinquan Automotive Trim, Bethel Automotive Safety Systems, Zhejiang Yinlun Machinery, Ningbo Joyson Electronic Corp., IKD Co., Ltd., Zhejiang Shuanghuan Driveline, Wuxi Longsheng Technology]. North America power shortages: Rapid growth in AI computing power leads to increased demand for data centers and cooling, with a focus on [Weichai Power, Zhejiang Yinlun Machinery]. Risk warning: Passenger car industry sales may not meet expectations; Intelligentization penetration rate may not increase as expected; Siasun Robot & Automation industrial development may not meet expectations; Customer expansion may not meet expectations; AIDC progress may not meet expectations; Risks of intensified market competition.